2017 FULL-YEAR RESULTS MARCH 1 st , 2018
DISCLAIMER This presentation contains estimates and/or forward-looking statements and information. These statements include financial projections, synergies, estimates and their underlying assumptions, statements regarding plans, expectations and objectives with respect to future operations, products and services, and statements regarding future performance. Such statements do not constitute forecasts regarding SUEZ’s results or any other performance indicator, but rather trends or targets, as the case may be. No guarantee can be given as to the achievement of such forward-looking statements and information. Investors and holders of SUEZ securities are cautioned that forward-looking information and statements are subject to various risks and uncertainties, which are difficult to predict and generally beyond the control of SUEZ, and that such risks and uncertainties may entail results and developments that differ materially from those stated or implied in forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed or identified in the public documents filed with the Autorité des marchés financiers (AMF). Investors and holders of SUEZ securities should consider that the occurrence of some or all of these risks may have a material adverse effect on SUEZ. SUEZ is under no obligation and does not undertake to provide updates of these forward-looking statements and information to reflect events that occur or circumstances that arise after the date of this document. More comprehensive information about SUEZ may be obtained on its website (www.suez.com). This document does not constitute an offer to sell, or a solicitation of an offer to buy SUEZ securities in any jurisdiction. 2017 Full-Year Results 2 I March 1st, 2018
Jean-Louis Chaussade Chief Executive Officer 3 I
2017: A STRATEGIC MOVE, FINANCIAL RESULTS IN-LINE BUT DISAPPOINTMENT ON EBIT FY17 numbers fully in-line with preliminary results Top line growth: c. 4% at constant FX Free Cash Flow of €1bn, in-line with guidance Financial leverage of 3.2x €45m of additional expenses in Q4 led to EBIT organic growth of -2% Higher expenses in Spain to defend PPP model in a more uncertain political context Operational difficulties in two challenging contracts in AMEI GE Water acquisition completed Integration well on track Confirmation of long-term value creation after positive first milestones 2017 Full-Year Results 4 I March 1st, 2018
IMPLEMENTING A STRONG ACTION PLAN To return to stronger growth and higher profitability FOSTERING A NEW 2 AMPLIFYING 1 TRANSFORMATION & MOMENTUM FOR COST-CUTTING FRANCE MEASURES DEPLOYING EXTRACTING 3 4 MAXIMUM VALUE RESOURCES TO FROM WT&S ACCELERATE GROWTH OUTSIDE EUROPE 2017 Full-Year Results 5 I March 1st, 2018
AMPLIFYING TRANSFORMATION & COST-CUTTING MEASURES First contribution expected as soon as 2018 Improve industrial performance Accelerate transformation through innovation & digital AT GROUP LEVEL Reinforcement of group monitoring on procurement and IT Further mutualize and implement cost cutting measures in France (HQ + BUs) as well as outside of France, notably in the US & Asia Launch a voluntary departure plan A SPECIFIC Integrate transversal functions and improve shared ACTION PLAN services efficiency FOR SPAIN Restructure Solutions & Technologies business unit COMPASS TARGET: €200m p.a. in 2018-2020 2017 Full-Year Results 6 I March 1st, 2018
FOSTERING A NEW MOMENTUM FOR FRANCE To accelerate profitable growth Enhance commercial momentum to address clients new expectations New offers: e-commerce and digital platforms, smart cities, smart metering and biogas production from both biowaste and sludge REBOOST COMMERCIAL Continue to lead technical and contractual innovation as in Thau with the first PPP, in Dole with the first SEMOP DYNAMISM in Water, in Créteil with the first concession contract with & partially merchant EfW facility ENHANCE Both Water France and R&R France will be managed PROFITABILITY optimizing overall performance: Further integrate transversal functions fully benefiting from the transformation of transversal functions including set up of shared services centers Improve assets & operations efficiency 2017 Full-Year Results 7 I March 1st, 2018
DEPLOYING RESOURCES TO ACCELERATE GROWTH OUTSIDE EUROPE After an half toned 2017 The group will benefit from the following key positive trends: US: new infrastructure plan THE RIGHT Middle-East & LatAm: higher commodities prices POSITIONING China & India: new regulation and environmental friendly measures Worldwide: environmental challenges (water scarcity, waste production…), increase in urbanization and CO² reduction objectives Gain market shares in municipal Water with a larger backlog since end of 2017: €1.3bn DB backlog (water and waste) at YE17 CONFIRMATION OF €1.2bn of new contracts recently signed: potable water in India, desalination in Emirates and water plants in Salvador & Senegal GROWTH POTENTIAL Acceleration of development in waste activities with high value-added solutions for both local authorities and industries: remediation, hazardous waste, Energy-from-Waste Strong expectations from larger industrial clients and partners REACH 4-6% REVENUE GROWTH P.A. OUTSIDE EUROPE 2017 Full-Year Results 8 I March 1st, 2018
EXTRACTING MAXIMUM VALUE FROM WT&S Reach >$3.1bn revenue by 2020 REITERATION OF Margin to gradually improve MID-TERM Synergies to contribute $95m (1) to EBITDA by 2022, of TARGETS which 80% as soon as 2020 More than $830m of revenue opportunities already FULLY identified, spread over more than 300 projects ENCOURAGING Already achieved $13m (2) of revenues and cost synergies FIRST since closing MILESTONES New contracts with Total, Statoil, BP, Petronas FULL-CONFIDENCE ON WT&S LONG-TERM VALUE CREATION (1) Or €90m, with EUR/USD at 1.06 2017 Full-Year Results (2) On a full-year basis 9 I March 1st, 2018
CONFIRMATION OF 2018 OUTLOOK Consolidated by action plan first contributions Revenue: growth at constant FX of c. 9% EBIT: growth at constant FX of c. 10% (1) Free cash flow: c. €1bn (2) Net financial debt/EBITDA: c. 3x Dividend policy: ≥ €0.65 per share in relation to FY18 results (3) (1) Excluding the impact of the GE Water purchase price allocation which will be determined in 2018; excluding the impact of the change in US tax law on regulated water activities, resulting in the transfer of €25 million in income from EBIT to taxable income, which is neutral to Net Result Group share 10 I (2) Excluding payments associated with the voluntary departure plan in France and recognized in 2017 and excluding the GE Water integration costs (3) Subject to 2019 Annual General Meeting approval
2017 FINANCIAL RESULTS Jean-Marc Boursier Group Senior Executive Vice-President Finance and R&R Northern Europe 2017 Full-Year Results 11 I March 1st, 2018
HIGHLIGHTS (1/2) 2017 EBIT guidance affected by specific elements for €45m Acceleration of organic growth of Gross Organic FY 2016 In €m FY 2017 revenues in H2 variation growth Organic growth REVENUE 15,322 15,871 +3.6% +1.5% H1 H2 FY17 Revenue +0.9% +2.1% +1.5% EBITDA 2,651 2,641 -0.4% -2.0% Positive momentum of R&R Europe division with higher volumes and prices International division growth hampered by EBIT 1,282 1,284 +0.2% -2.0% phasing in construction activity and abnormal weather conditions in the US NET RESULT Limited tariff increases in Water Europe 420 302 -28.2% group share 2% organic decrease in EBIT: 3 specific elements weighed on EBIT for €45m Performance of Water Europe still affected by low inflation environment Progressive recovery of R&R Europe Net result affected by €109m exceptional costs: Voluntary departure plan in France GE Water acquisition cost 2017 Full-Year Results 12 I March 1st, 2018
HIGHLIGHTS (2/2) RESILIENT CASH FLOW GENERATION Acquisition of GE Water Gross FY 2016 In €m FY 2017 variation €2,699m price paid (1) €510m revenue and €52m EBIT FREE CASH FLOW 1,005 1,004 0% contribution in Q4 2017 NET INVESTMENTS 705 3,646 N/R NET DEBT 8,042 8,473 +5.4% Limited increase in net debt Free cash flow objectives achieved ND/EBITDA 3.0x 3.2x +0.2x Economic leverage of 3.0x, assuming ROCE 7.0% 6.8% -20bps full-year contribution of GE Water (1) Net of acquired cash & cash equivalents 2017 Full-Year Results 13 I March 1st, 2018
REVENUE: +4.1% AT CONSTANT FOREX Driven by improving performance of R&R Europe and acquisition of GE Water In €m 15,871 +0.9% +3.1% +1.0% 15,322 +46 +187 +364 (84) +37 R&R (2) Scope Water International Forex Europe Europe & others (1) QUARTERLY ORGANIC GROWTH +3.8% +2.2% +2.0% -1.8% FY 2016 FY 2017 Q1 Q2 Q3 Q4 (1) Including +€510m from first consolidation of GE Water in Q4 2017 2017 Full-Year Results 14 I (2) Recycling & Recovery March 1st, 2018
Recommend
More recommend
